2009 Viewpoint Fall Issue

I O WA I N D E P E N D E N T A G E N T S

Trusted Choice®

VOLUME 27 / ISSUE 4 / FALL 2009 INDEPENDENT INSURANCE AGENTS OF IOWA

2009 Independent Insurance Agents Convention Highlights!

Meet Jeff Bohnenkamp, CIC, IIAI’s 104th President

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I O WA I N D E P E N D E N T A G E N T S

Trusted Choice®

President’s Report The Times They Are A Changing

Viewpoint is a publication of the Independent Insurance Agents of Iowa.

Viewpoint is ­published ­quarterly: Winter, Spring, Summer and Fall. Viewpoint is mailed to Iowa ­insurance agents, Iowa Home Office Executives, Affiliate members, and other state ­associations and organizations.

Independent Insurance Agents of Iowa 4000 Westown Parkway West Des Moines, Iowa 50266 (515) 223-6060 • FAX (515) 222-0610 800-272-9312 (In-State only)

Advertising Editor Melissa Meiners

President

Jeff Bohnenkamp, CIC - Spencer

President-Elect BOARD OF DIRECTORS

Mark Currie, CIC, CPIA - West Des Moines

“We appreciate your involvement during these politically charged times and encourage our members to continue to be the voice and force for our Association on Main Street Iowa.”

by Jeff Bohnenkamp, CIC Page 5

National Directors Message

33 AmTrust Financial Services 8 Berkshire Hathaway Homestate Companies 16 Bituminous Insurance Companies 35 Burns & Wilcox 28 First Western Insurance

by Tom Richardson, CIC Page 7

Directors

Meet Jeff Bohnenkamp, CIC Page 11

4 General Casualty 31 Grinnell Mutual Reinsurance Co. 46 IIAI 31 IIAI 9 The IMT Group 21 IMWCA Iowa Municipalities Workers’ Compensation Association 28 Iowa Mutual Insurance Co. 36 Insurance Finance Corporation 26 Integrity Insurance 44 LeMars Insurance Co.

2009 Convention Highlights

30 Merchants Bonding Co.

Page 22

34 M. J. Kelly Company

Des Moines Area Agents Award Heroism

38 NCMIC Finance Corporation 20 Northern States Agency 12 Pekin Insurance

Past President

Page 27

20 RDS Group

Chief Executive Officer

The Breakthrough In Agency Automation…A Brief History

by Jeff Yates, ACT Executive Director

5 Rural Community Insurance Services

Hans Boehm, CPCU - Boone

Bob Skow, CPCU, CAE bob@iiaiowa.org

Membership Operations Coordinator Melissa Meiners melissa@iiaiowa.org • Ext. 15

IIAI OFFICE STAFF

16 AMERISAFE

“Even though Iowa is experiencing very difficult economic times, we are in much better economic condition than many of the other states.”

In This Issue

Paul Pohlson - Grinnell Terry McDonald, CIC - Iowa City Scott Morningstar, CPCU - Lisbon Jerry Mease - Winterset Eldon Hunsicker - Ottumwa Terry Friedman, CPCU - Dubuque Tim English, CIC - Dyersville John Dalton - Council Bluffs Steve Madsen - Marshalltown

47 Acuity

10 EMC Insurance Co.

National Director

Tom Richardson, CIC - Keokuk

15 Accident Fund

GIANT Steps Forward

Treasurer

Brian Petersburg - Decorah

Advertisers

Page 29

45 Rain and Hail 32 Ringwalt & Liesche Co. 14 State Auto Insurance Companies 6 SECURA Insurance Co.

Technology & Communications Administrator

Workers’ Compensation, Certificates of Insurance, Binders, Data Collection, Client Signatures, and Other E&O Pitfalls!

Membership Services Coordinator

by Bob Skow, CPCU, CAE — Chief Executive Officer

18 Truckers Insurance Associates, Inc.

Jeanne Reynolds jeanne@iiaiowa.org • Ext. 17

Marilyn Paul, CPCU, AIT, AAM, CPIW marilyn@iiaiowa.org • Ext. 11

Membership Services Coordinator

Page 39

2 Society® Insurance 19 Taylor Insurance Services 32 Transportation Insurance Services, LTD 37 West Bend

Linda Brazelton linda@iiaiowa.org • Ext. 16

We would like to thank our ­advertisers

Membership Services Coordinator

not be possible ­without them.

Brenda Kluger, MBA, CIC, CISR, CPIW brenda@iiaiowa.org • Ext. 14

for their support. This magazine would THANK YOU!

Membership Services Coordinator Marie Huggins marie@iiaiowa.org • Ext. 22

Receptionist

Cindy Grim cindy@iiaiowa.org • Ext. 12

MISSION STATEMENT: The Independent Insurance Agents of Iowa will be an ­unrelenting advocate of the ­business, professional and ­political interests of its members; doing so by working in the ­public’s best interest and with the highest ­ethical standards.

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president’s message

The Times They Are A Changing

by Jeff Bohnenkamp, CIC

T

hank you for allowing me to serve as your 104th President of the Independent Insurance Agents of Iowa. For those able to have attended, the Convention was a great time and well worth the money and time to attend. Without the continued support of our member, companies and exhibitors, we would not be able to deliver this quality of a convention.

So what is new for the upcoming term?

We are proud to be rolling out our new advertising program statewide. Please share your feedback to us as this program hits the airwaves. It is our hope to be able to build on this program in future years. We are also happy to announce a

new agency visitation and recruiting effort utilizing past presidents (and Board Members) this fall. It is a pleasure to work with and see these fine agents continuing to work for the betterment of our Association. During the new term of leadership, advocacy to our members is our #1 goal and priority. With your continued involvement and support, we can ride the wave of ever changing situations affecting our livelihood and provide the Iowa insurance consumer with advice, protection and stability. We appreciate your involvement during these politically charged times and encourage our members to continue to be the voice and force

for our Association on main street Iowa.

What will be the next big change in our industry? Could it be a public health insurance plan? Will the property and casualty market harden in pricing and underwriting? Your guess is as good as mine. One thing we can be sure of is that the business will continue to change and challenge us as professionals. Together, we can continue to have input in how the changes will affect us and our customers.

We look forward to continuing to serve you. Have a great fall and enjoy the change in seasons.

President Jeff Bohnenkamp, CIC

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national director report

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GIANT Steps Forward

by Tom Richardson, CIC

M

y first year as your National Director is coming to a close, and even though I expected to spend this first year learning the ropes; listening, learning, reporting back to our Iowa Association, and in general walking around like a deer in the headlights, it has rapidly become apparent that the best way to learn is jump in with both feet, and that is exactly what has happened.

Being appointed as a member of the IIABA Health Care Task Force early this year opened my eyes in a hurry to the workings of our National Big “I” Association and the energy they put into matters that are of great importance to independent agents. Following up my appointment to the task force was an appointment to the AAS Board, (Agency Administrative Service) the for profit company that oversees and manages the IIABA’s insurance products. Working with the Health Care Task Force, AAS, and the National Big “I” Board has reinforced what I knew, but never really fully understood, that the IIABA really does work for you, the agents. Add the tremendous support of the Independent Insurance Agents of Iowa into the mix, and the work these organizations do for their agents and the insurance industry as a whole is nothing short of spectacular.

On September 12-13 the IIABA held their Fall Leadership Conference and Board Meeting in New Orleans, and I

would have to say it was to date, the most interesting IIABA board meeting that I have attended. The initial agenda allowed 90 minute’s to discus making the Trusted Choice Brand the Unified Brand for independent insurance agents. The National Board has been moving in this direction for many years, and the feeling was that it was time to move forward and make the Trusted Choice Brand our universal brand.

What started as a 90 minute discussion ended up being an all day discussion with a break in the middle to install David Daniel as the IIABA’s new Chairman. The Iowa Association had already voted to make Trusted Choice as our brand for the future, so I went into the debate with one purpose in mind: vote to make Trusted Choice the brand for independent agents. The National Trusted Choice Board actually only needed a 51% majority of National Directors to move forward however as the meeting began the Trusted Choice board announced that they would only go forward with the universal branding with a 2/3 majority.

The motion passed, but not by the 2/3 majority that was deemed acceptable by the Board. Of interest, was that nearly

all if not all of the board members at the meeting are Trusted Choice members, and believe in the value of the Trusted Choice brand, however the board was voting for each board member’s state wishes, and not necessarily their own views. What was most evident in the discussions was not that the board members didn’t want the Trusted Choice branding for independent agents, rather it appeared that the board members were sensitive to their state membership’s economic situation and were concerned about ® possible increases in dues that their agents members would not accept, or be able to absorb. Even though Iowa is experiencing very difficult economic times, we are in much better economic condition than many of the other states; in addition, our state membership is not shrinking, however other states are loosing agents and agencies due to a high rate of mergers and acquisitions. There was a lot more discussion that I could write about on Trusted Choice, however I would stress that nearly all of the of National Board Members see the value of the Trusted Choice brand, and I felt after the discussion that at some point this or a

Trusted Choice

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national director report

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future board will vote with a 2/3 majority to make Trusted Choice the unified brand of the Independent Insurance Agents.

The timing just has to be right.

In a past article I wrote about the IIABA’s work in creating a task force to work on establishing a consumeragent internet portal that would provide independent agents with a dominant web presence including an agent locator that will consistently appear in the Top 5 of insurance/auto insurance/home insurance searches on the most popular internet search engines. The task force was established in response to a declining personal lines market share for independent agents, and the continued trend of consumers to search the web for their insurance products and answers. In fact, direct writers now have about 68% of the personal lines market share nationwide, a number that is increasing every year. I am proud to report that the IIABA Board voted unanimously to commit $275,000 to establish the agent-consumer web portal and to begin the process of driving the consumers to independent agent websites and assist independent agents in gaining back their personal lines market share.

The easier and less expensive course of action would have been to tell the agents they are loosing personal lines customers but do nothing to assist them. This is a giant step forward, and I commend the national board in their decision to do something positive to assist agents, especially in these difficult economic times.

If you haven’t had the opportunity to access the BIG “I” Virtual University or Ask the Expert with Bill Wilson, you might want to. Bill Wilson has been taking the lead for the IIABA in working on a solution to the national problem with certificates of insurance. I know I am preaching to the choir here, but as you know, certificates of insurance continue to be a monumental problem facing agents. Agents are increasingly being asked to provide certificates that are creating serious E&O exposures and in some cases a loss of a customer. Bill provided an update on what he has been working on with regards to certificates, and I felt that it was very positive that IIABA would make

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certificates an agenda item at the board meeting. Bill would be the first to tell you that this task will take time, as some states are being very proactive and some states are doing nothing. In order to solve the certificate problem on a National basis it will take education, negotiation, public relations, and cooperation between the companies, regulators, business groups and on and on. Well, hopefully you will realize that National has made certificates a priority, and they are working to try to get changes made. Unfortunately it will take time, and I know for some agents that is not what they wanted to hear. I do think our best chance at correcting the situation must be two pronged, with both the state and national associations working to solve the issue.

And, finally, no National Directors report would be complete without an update on Health Care Reform. I know that you are all probably getting tired of

hearing about health reform, and any update that I can provide you in this article will probably be old news by the time we go to print. What you are seeing is what appears to be the future of the health reform debate taking shape with the Senate Finance Committee finally releasing their version of a health reform bill. There is still a long way to go, and a tremendous amount of discussion yet to take place. In visiting with other agents from around the state and country I find a variety of views on how reform should take shape, and what the agents role in the final solution should be. I think we all can agree that changes need to be made, but what those changes should be varies greatly from agent to agent, and consumer to consumer.

You can trust your Iowa and National Associations to continue to represent the independent agents in this process and to keep you updated and informed.

Have a great fall!

IMT Celbrates 125 Years!

IIAI Congradulates Them!

The “Be Worry Free with IMT” company started from humble beginnings 125 years ago in Wadena, Iowa. In January of 1884, J.B. Herriman formed The Iowa Mutual, Tornado, Cyclone and Windstorm Insurance Association to provide wind and tornado insurance to farmers. By 1885, the company had $1 million of tornado insurance in force. By 1911, it attained the $150 million mark.

The IMT Group is proud of its Midwest heritage and will never forget where its roots are firmly planted. Locally run from its home office in West Des Moines, Iowa, IMT has been a Midwest company since it was founded in 1884.

Today, The IMT Group consists of IMT Insurance Company and Wadena Insurance Company. IMT continues to offer the strong line of personal and commerical products for which it has always been known. The company is advanced in automation and has won awards for their

innovative technology, most recently The Fusion Award.

Wadena Insurance Company was founded in 2007 and is an exciting new company. It offers state-of-the-art Personal Auto, Boatowners, and Power Sports Programs.

Additionally, it also offers Businessowners and Workers’ Compensation. Future plans include an innovative Homeowners Program as well as further expansion into Commercial Insurance lines.

The IMT Group’s products are offered through more than 700 Independent Agencies based throughout their five state territory which consists of Iowa, Illinois, Nebraska, South Dakota and Wisconsin. Great pride is taken in the partnerships and friendships that have been established with their Independent Agents throughout the years. IMT’s success is attributed to their loyal Independent Agency force.

I u sed to think EMC was ju st for commercial lines.

Then again, I used to think babies

came from storks.

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Even our most basic level of coverage provides better-than-average protection with identity theft resolution service and extra coverages such as silverware theft, refrigerated property, lock replacement, personal injury, identity fraud expense, golf cart liability and many more. Learn about these exciting new coverages by contacting your local EMC branch office.

Des Moines Office: 800.362.2227 | Home Office: Des Moines, IA

www.emcinsurance.com

© Copyright Employers Mutual Casualty Company 2009 All rights reserved

Meet Jeff Bohnenkamp, CIC Independent Insurance Agents of Iowa 104th President

viewpoint Viewpoint: Jeff, you are the Indepen-

dent Insurance Agents of Iowa’s 104th President! We understand you grew up in Lake View, Iowa, a typical small town.

Jeff: I had a wonderful childhood growing up in Lake View on Black Hawk Lake.

I had a diversity of jobs as a kid including working at a boat marina that was nothing but fun. I would pump gas, give boat rides, and take people skiing.

I also lifeguarded, walked beans, and I detasseled corn like many Iowans.

Viewpoint: Growing up in a small town in Iowa I bet you knew just about everybody.

Jeff: Yes, especially in a town the size of Lake View which has held its population at about 1200.

Viewpoint: Your dad was an agent in Lake View too?

Tell us about your dad.

Jeff: I had a loving father who did everything he could for his family. He was a World War II Guadalcanal survivor and was able to stay here on earth until he was 86 years old. When he got out of the service

he went back to school on the GI Plan and actually ended up being a funeral director and did not enter the insurance business until 1960 when he decided he was ready for a career change. He ended up a local property/casualty insurance agent and real estate broker in a bank agency that he was a partner in. He served on many volunteer boards through out the county and state and was a past city councilman.

Viewpoint: The apple doesn’t fall far

jeff from the tree.

Jeff: In this case it didn’t. It was a surprise to end up in this industry as I had no intention of being in the insurance business but after spending some time with my father, I enjoyed the people and relationships of the business.

Viewpoint: When you graduated from high school you went to the University of South Dakota?

Jeff: I went to the University of South Dakota, home of the Coyotes. I had applied and was accepted to go to college at the University of Arkansas, Fayetteville, but my mother wanted me to be closer to home so she begged me to go visit the University of South Dakota because an “All American Boy” from our hometown who was a former quarterback and a senior attended the University. I was only going to go visit and stay one night and three days later I can back to Lake View, Iowa and decided I liked South Dakota.

Viewpoint: While you were still in college you became a licensed insurance agent. Tell us about that.

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Meet Jeff Bohnenkamp, CIC

Jeff: During my college career I was

Viewpoint: What did the corporate

President of Delta Sigma Phi Business Fraternity at the University of South Dakota. In that it was a professional business fraternity we got the opportunity to mirror and look at different industries, take fieldtrips and further contacts in the insurance industry at that time. My father who loved the insurance business begged me to go to work for him one summer and I agreed to it as long as I could keep my bartending job at the same time. I really had a great summer. I ended up going down to Drake to a licensing class and ended up getting my licenses in insurance in the summer of 1976. I graduated from the University of South Dakota in May of 1977. The highest paying jobs that I was offered out of college were in the insurance industry. I took a job with State Farm as a corporate trainee in their regional office in Lincoln, Nebraska.

training program at State Farm entail?

Jeff: It was an 18-month period training program that included 3 different phases of their operations. You spent time in claims, underwriting, and management which was primarily policy processing.

Later they would try to coax you into the agency side of it if that is where they thought you were a shining example or a star. I chose not to go into the captive agency selling position with State Farm and ended up going into their underwriting program. I was a senior underwriter with them until I switched to another company.

Viewpoint: After State Farm where did you end up?

Jeff: I ended up in Omaha, Nebraska

name from the past which ended up being acquired by Connecticut General which turned into CGAetna which next merged with INA to form CIGNA. It was at that time I decided maybe I should look to an agency for employment and further career development.

Viewpoint: What did you do with little Aetna?

Jeff: I was a senior lines commercial underwriter and had the pleasure and luxury of handling some of their national accounts that were out of the Omaha branch office. Some of the accounts included Tasty Toppings which was Dorothy Lynch, Pacesetter Manufacturing which was a window and door manufacturer, and the National Farmers Organization which was headquartered in Corning at the time.

working for little Aetna. Little Aetna is a

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Meet Jeff Bohnenkamp, CIC

of working with Diana Musser and Carol McKewon who I have worked with since I moved to town in February of 1982.

When we opened up from scratch they came with us to open up the agency and they are still with us today.

Viewpoint: Tell us about Insurance Associates of Spencer.

Jeff: There are six full-time people at the agency plus the other remaining partners.

Viewpoint: Who do you represent?

Jeff: Companies we represent include Employers Mutual, Cincinnati Insurance Company, Society, General Casualty, Auto-Owners, Travelers, West Bend and United Fire & Casualty.

Viewpoint: Tell me about the agency book of business.

Left to Right: Diana Musser, Jen Heying, Carol McKewon, Sandy LaRue, Jeff Bohnenkamp and Steve Fox.

Viewpoint: You like many Big “I” Members worked for companies and then made a transition to the agency side.

How did that happen?

Jeff: We were in Omaha, Nebraska at the time and our youngest child was ready to go to kindergarten and they had passed a spending lid which would involve busing and our choices for education were to either send our child to the Catholic school that was a couple blocks down the street or to send them to public school using the bus. We decided we didn’t really like either very well and started looking at a smaller community to raise our kids. At the time, we only had three kids and were later blessed with a fourth.

Viewpoint: So, how did you end up in Spencer, Iowa?

Lake. I started off as a placer for them which is a position that was created for me and before it was over I was their manager for their northwest operation before they sold out to Hawkeye Bank.

mately 67% Commercial, 23% Personal and 10% Health. We have a full-time producer, Steve Fox, who has been with us for over ten years who started out with no experience in the insurance business that we trained from scratch. We have support staff and I also sell full-time along with the three partners.

Viewpoint: What did you do when

Viewpoint: How big is your market

Hawkeye Bank came into play?

Jeff: I had the opportunity to either go to work for Hawkeye Bank in a different location or relocate with Kirk-Van Orsdell in Des Moines. Having only been in Spencer for the last two years, we decided it was a community that fit our needs as far as raising our children. We loved it here; therefore, I decided to open up from scratch an agency with partners from Stille Pierce & Pertzborn August 1, 1984.

Viewpoint: So that was the beginning of Insurance Associates of Spencer?

Jeff: Kirk-Van Orsdell offered me a job.

Kirk-Van Orsdell had recently purchased Peters-Reimers Insurance Agencies that had offices in Spencer, Milford, and Spirit

Jeff: The book of business is approxi-

Jeff: Yes, we are proud to still be open and very pleased with the people we have working with us. I have unique pleasure

territory?

Jeff: Spencer is 11,000. We target a four county area too. We market up and down Highway 71 and then branch off of it 2030 miles in each direction. The Okoboji Lake nearby is part of our target area and it is a very pleasurable place to do cold calls even in the winter time!

Viewpoint: Tell us about your Agency Management System.

Jeff: We are presently using Applied Systems and we have been through all of their versions from the start. When we first started up we were under a batch system which was using a vendor out of Omaha, Nebraska which was an entirely

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Meet Jeff Bohnenkamp, CIC

different world than today. We have come a long way!

ates apart from your competitors?

keep with the ever changing format in the insurance business. If you do not continue to learn you will find yourself behind the eight ball and not be able to give the best service and advice to customers.

Jeff: We have the luxury due to the diver-

Viewpoint: Was your first exposure to

sion in our staff to work and specialize in specific areas. We have people that do nothing but life and health and some that do nothing but personal lines. We also have people with expertise in writing hospital accounts in the medical area and others in municipality accounts. That has allowed us to not be just a jack of all trades but to specialize and give the best service and advice to our customers.

the Big “I” through your father?

your involvement with the Independent Insurance Agents of Iowa?

Jeff: My first out of town experience in

Jeff: When I came to Spencer I had

Viewpoint: What sets Insurance Associ-

Viewpoint: When did you become a CIC and how important is education in your agency?

Jeff: August 1987 and education is an essential part of the business in order to

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the insurance area was attending the insurance convention at the Hotel Fort Des Moines in the early 70’s with my father. I had the experience of meeting all these wonderful wild people and got to experience the height of the hospitality era with hospitality rooms and lifelong friends of my father’s in the business who were enthusiastic even in their older years about the business itself.

Viewpoint: You can verify conventions were a little different 30 years ago?

Jeff: Conventions have always been fun.

They were longer and there were more opportunities for visiting hospitality room and meeting the diverse crowds.

Viewpoint: Is that what led in part to

an opportunity to be mentored by Don Peters, a Past President of the Independent Insurance Agents of Iowa.

Also at that time it was set up under the District Director format rather than Board of Directors format and Ron Rensink had finished his term and decided not to continue as a District Director so I became a District Director for District 12.

This was short lived when they changed the hierarchy of IIAI and went to a Board of Directors.

Thank You, Agent Partners!

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Meet Jeff Bohnenkamp, CIC

Viewpoint: Tell us how you became

construction periods. Prior to the two year period there was approximately 18 months of planning and development that including sightseeing at other streetscape projects in Iowa and Minnesota.

active with the Young Agents and Governmental Affairs Committees.

Jeff: The Young Agents was a wonderful start to my association with the Association. After moving to Spencer and not knowing anyone except those in the agency, Don Peters and my father encouraged me to start looking into the young agents group. At that time the young agents were perpetually having a summer retreat and conference at Lake Okoboji so it was an opportunity for my wife and I to meet some other young insurance people and their families. We have developed lifelong friends from that initial activity.

After serving some time with the young agents and being awarded Young Agent of the Year in 1989 I was able participate in the Governmental Affairs Committee and was eventually Chairman for a 4-year period of time which included the Gramm-Leach-Biley legislation era.

Jeff receiving IIAI’s Young Agent of the Year Award from Dave Harper in 1989.

Viewpoint: If someone was thinking

Jeff: I was the chairman of the Down-

about joining the Big “I” what would you tell them?

Jeff: It is a great opportunity to meet

Viewpoint: You are to be congratulated; the main street in Spencer is something that a lot of communities in the country could take a lesson from.

Jeff: We are very fortunate to be able

of Iowa to get involved at any level they would like to. I am excited about the new advertising campaign and the opportunity to continue to voice independent agent’s positions on a local, state and national level.

Viewpoint: What is your community involvement in Spencer?

town Revitalization Project for Spencer which was a multi-year project where all the downtown curbs, gutters, sidewalks, and lighting were replaced over two year

to have the funding through Spencer Municipal Utilities and the foresight of the Spencer City Council to tackle big projects and have the volunteers and revenues to succeed.

Viewpoint: Tell us about other involvement in the community.

Jeff: I am Past President of the Spencer Jaycees, Past Board Member of United Way, Past President of the Spencer Ambassadors, Past School Board Member at Sacred Heart Catholic School, presently lay minister and lector with Sacred Heart.

I enjoy the friends and social activities that our small community provides being located so closely to the Iowa Great Lakes.

peers in the industry. It is an organization that continues the daily fight for the livelihood of the American agency system and protection of the general public and our customers that has also helped commerce through the history of the United States.

The Big “I” agencies play a vital part of any local main street and community.

Viewpoint: As an agency owner what keeps you awake at night?

Jeff: The dreaded uncovered claim/E&O exposure that could arise at any time no matter how diligent you and your staff try to be.

Viewpoint: As President what would you like to focus on in the upcoming year?

Jeff: I am excited about the opportunity to represent the Iowa Independent Insurance Agents as their President. There is an opportunity for every agent in the state

Back Row: Jeff Bohnenkamp, CIC

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Meet Jeff Bohnenkamp, CIC

Viewpoint: The Spencer Ambassadors

Viewpoint: What do you do for fun?

are famous for some colorful sport jackets they wear.

Jeff: I am fortunate to have a wonderful group of friends that have developed that make it a pleasure to live here even though we have awfully long seasonal winters. I especially enjoy boating, swimming, golfing and try to get in as much hunting as possible.

Jeff: The material is a special Pendleton wool design plaid that has been used by the Ambassadors since the late 60’s. The present Ambassadors continue to special order the special material to have the blazers custom made. They are widely recognized especially throughout the state and down at the State Capital during the legislative season when we attend Spencer Day at the Capital.

Carol McKewon and Jen Heying.

Jeff: Annually, I have the pleasure of going to different places to waterfowl and pheasant hunt. Usually I go out to western South Dakota, west of the Missouri and hunt pheasants twice during the season. I hunt a lot of waterfowl locally but also go down to the Riverton area on the Missouri River a couple of times during duck season to a private club.

Viewpoint: What do the Ambassadors do?

Jeff: The Ambassadors are a goodwill organization for the community that welcome new businesses and participate in ceremonial functions like grand openings, relocations, and really are good will ambassadors to the public.

driven

Viewpoint: You love to hunt.

Sandy LaRue and Jeff Bohnenkamp.

Steady and true Insurance coverage for the transportation industry can sometimes be unknown territory. But a partnership with Truckers Insurance Associates provides clear direction. Truckers Insurance is solely focused on transportation insurance — and has been for over 65 years — so we know every turn, every twist and every hard-to-see pothole. Whether your clients include a single owner-operator or a full-fledged fleet, Truckers Insurance will deliver the right coverage at the right price. With knowledgeable service and innovative solutions from Northland, Carolina Casualty, Zurich, Maxum, The Hartford, and Dakota Truck, working with Truckers Insurance can make for a very smooth ride. Call Truckers Insurance at 800.652.9515 for a quote today.

www.truckers-insurance.com

TI-CORP00056 AA&B Ad.indd 1

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| FALL 2009

800.652.9515

8/7/09 9:29:07 AM

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Meet Jeff Bohnenkamp, CIC

Viewpoint: You love to go boating?

Jeff: As often as possible. It is a great relief and you have to try to maximize the summer as short-lived as it is here.

Viewpoint: Tell us about your family.

Jeff: MaryAnn, my wife and I are blessed with four adult children. We have two boys and two girls. The oldest daughter lives in New York City and just started in the life insurance business. Our youngest daughter and youngest child is a student at the University of South Dakota. Our two sons live in Spencer at this time and are involved in sales but not in the insurance business. MaryAnn and I have been married 33 years this year.

Diana Musser.

parting words of wisdom for our membership?

Jeff: I would encourage all of you to

Viewpoint: We look forward to your leadership over the next year. Thank you for taking time to share with us. Any

Jeff Bohnenkamp.

Steve Fox.

try to be as active in the Association as possible. It lends itself for great opportunities not only to network with your peers but gives you the strength in numbers. I look forward to working on their behalf over the next year. Thanks for allowing me to serve as the Independent Insurance Agents of Iowa 104th President.

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2009

Convention Highlights the party!

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golf

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Jerry Block receiving a Presidential Citation from Hans Boehm, CPCU.

John Forsyth from Wellmark Blue Cross & Blue Shield addresses the audience on Health Insurance.

IIABA Chairman David Daniels.

Scott DeSousa, CIC receives Presidential Citation.

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Jim Abbott tells of his triumphs and tribulations of growing up without a right hand and becoming a great baseball pitcher.

speakers

Brady Polansky, CPCU, CIC, CPIA – The AMS Users’ Group.

Hans Boehm, CPCU gives Doug Follmann a Presidential Citation.

Bob Fulwider received a Presidential Citations for his dedication to the Independent Insurance Agents of Iowa.

Forrest Schnobrich is presented the H.H. Red Nelson Agents of the Year Award.

Steve Madsen of Marshalltown was elected to the IIAI Board of Directors.

awards

Doug Miller of Osceola receives the C. Daniel Fulwider IIAI Young Agents of the Year Award.

Company Panel addresses the audience on what is going on in the industry.

David Williamson.

Jeff Bohnenkamp, CIC IIAI’s 104th President.

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IM-0109-7_5x10 SWells IIA-IA:Layout 1

4/3/09

3:30 PM

Page 1

“They really understand our market.”

Steve Wells, Owner United Insurance Agencies

I like working with a regional company like Integrity because I feel they really understand our market and add real value. The quality of their staff is top notch—they are accessible and ready to go whenever we need an answer or have a claim to file.

This personal touch keeps the business easy for our clients.

– Steve Wells.

integrityinsurance.com A Member of the Grange Mutual Casualty Group.

We’re true to our name.

If you are interested in becoming an Integrity Independent Agent, contact Cathy Beaudin, CPCU, Director, Agency Relations 1-800-348-1741 ext 8326 or cbeaudin@imico.com.

Des Moines Area Agents Award Heroism DSM Police Crime Fighters Banquet, sponsered annually by the Des Moines Big “I” Association…just another example of the local Big “I” Association giving back to the community. They awarded nine plaques and monetary awards to citizens that assisted a police officer in a dangerous situation, that resulted in the arrest of one or more criminals. There were also seven Humanitarian awards for citizens that performed an act that resulted in saving one or more human lives. The most publicized being Jason Ogelsbee and Joey Lowe

who pulled a woman and man from the Des Moines river using a crane, after their boat went over the dam (this made national news).

Approximately 80 people attended including families of the recipients, police officers, and local Des Moines insurance agents Ted Lussem, Greg Donahue, Dave Merrill, Bob Andrews, and Chuck Russo. The Des Moines Association sponsers this event annually, along with also providing much needed equipment for the Des Moines Police and Fire Departments.

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Conducting business in today’s marketplace is not for the faint-hearted. We recognize that every decision must reflect our dedication to continuous improvement. Our associates understand this need, and they are meeting the challenges daily.

We offer tools to help your agency navigate the stormy insurance industry climate.

How about a company that: • has competitive, family friendly personal lines products • has local district sales managers with full underwriting authority • fully supports the independent agency system • has been providing innovative commercial products to the Midwest for over 100 years Proudly exceeding expectations—every time, every day.

Interested in knowing more about Iowa Mutual? Contact Jack Dunning, Vice President, Marketing, at 800-456-5259, extension 3253; at Iowa Mutual Insurance Company, 509 9th Street, DeWitt, IA, 52742; or at jack.dunning@iowamutual.com.

Iowa Mutual is proud to be associated with Independent Insurance Agents & Brokers of America and to participate in its programs.

www.iowamutual.com

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the breakthrouh in agency automation

About this Article Based upon a brief history of agency

The Breakthrough In Agency Automation…

A Brief History

automation written for the 80th anniversary issue of American Agent & Broker, this article describes how agency automation has moved over the last decade from being a source of frustration for many agencies to a major contributor to increased agency productivity. Whether you are talking about agent-carrier interfaces, download, or the emergence of agency management systems, the history of agency automation is an interesting

by Jeff Yates, ACT Executive Director

F

or much of its history, agency automation was a source of agency frustration because of its cost and unfulfilled promises. Remember “Paperfree in 83” or the promises to achieve SEMCI (Single Entry, Multiple Company Interface) in the 80s and 90s?

Fortunately, there has been a sea change over the last decade in the quality and functionality agency automation now offers, coupled with agent-carrier interfaces that really deliver. Agencies taking advantage of these advances are cutting redundant and time consuming processing and replacing it with revenue generating sales and pro-active service.

Many agencies are virtually paper-free in personal lines today and increasing numbers are working on small commercial business now that carriers and vendors have improved their commercial lines download. The great progress being made with Real Time is putting independent agencies within striking distance of achieving the agents’ vision of SEMCI— and it is only going to get better.

The history of agency automation is also the story of how independent agents and carrier and vendor leaders can make a real difference in the evolution of the technology and workflows available to our distribution system by becoming involved at the industry level in user groups and organizations like ACT (Agents Council for Technology) and AUGIE (ACORD User Groups Information Exchange).

Agents’ Vision for Carrier Interface The agents’ overall vision to be able to

one characterized by independent agent, carrier, and vendor leaders who work in a consistent manner with multiple carriers has been remarkably constant over time. In 1906, an agent petitioned the National Association of Insurance Agents (NAIA, now IIABA) to take the lead in developing standard applications and procedures for dealing with the carriers!

This agent was ahead of his time, but as a result of the foundation work of several California agents and western based carriers starting in 1968, NAIA and 12 carriers formed the ACORD Committee within the agents association in 1970 to begin the development of standardized applications and forms.

In 1975, ACORD became a separate corporation and has since grown into the international standards body for the insurance industry. In the early years it was extremely difficult to get the carriers to agree on common forms, especially applications. But through agent persistence over several years and the leadership of several companies, the logjam eventually broke and today there are thousands of standardized ACORD forms without which the agency management systems of today would not have had the standards necessary to design the data fields in their systems and generate common applications.

In addition to having standardized forms, however, the prescient agents in 1975 wanted to develop an agency universal terminal that they could use to access multiple carriers electronically. To further this goal, NAIA formed the EPIC Committee which had a meeting with several carriers in Point Clear, Alabama

articulated a clear vision and made a real difference in the efficiencies that independent agencies enjoy today.

that lead to the formation of the Insurance Institute for Research (IIR) in 1977 to study agent-company operations automation. IIR studied the concept of the agents universal terminal and also began the development of batch electronic standards which eventually became the basis for the downloads that save agencies so much time today.

Out of IIR emerged the need to create IVANS in order to provide the industry with a shared data communications network to save cost. IVANS today is still the entity that most carriers and agencies use to aggregate and transmit carrier downloads to agencies each evening. While IIR was successful in creating the first electronic standards for the industry along with the creation of IVANS, there was not sufficient support to move forward with the universal terminal concept that many agencies wanted to see. In 1982, ACORD & IIR merged bringing together the entity that developed both the paper and electronic standards for the industry that we know today.

During the 1980’s and 1990’s, the agents made great progress with standardized forms and personal lines download but still had to contend with the inefficient uploading of data to the carriers. First the carriers placed their proprietary terminals in agent offices and then some carriers and vendors tried to achieve SEMCI by implementing batch

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the breakthrouh in agency automation

uploads using the standards but this approach only met with limited success.

The Internet Creates Major Change With the advent of the Internet in the late 90’s, carriers saw an opportunity to build their own carrier websites to increase the information and functionality available to their agents as well as to reduce their own processing costs. As these websites proliferated, agents again were faced with having separate and inefficient workflows for each carrier, including the need to logon to each carrier’s site, remember the carrier’s password, learn how to navigate the site, enter the same data again and again to compare quotes (even though the data was already sitting in the agency management system), and train each employee on multiple carrier workflows.

Fortunately, the Internet and the Web services used by carriers for their proprietary websites also sowed the seeds that enabled enterprising agency management system vendors to create a workflow that allows agencies finally to realize their long held vision of a SEMCI workflow. It is called Real Time.

Real Time – A Major Breakthrough Real Time enables agents to work with multiple carriers in a consistent way through their own systems; it handles log-

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ons and passwords to carrier systems and websites automatically; and it eliminates having to re-enter data that is already in the agency management system. Real Time includes inquiries (billing, policy view, claims, etc.), endorsements, and quoting through their agency management systems and comparative raters.

In the 2008 IIABA Future One Agency Universe Survey, agencies ranked Real Time billing, claims, and policy inquiry as the technology having the greatest impact on their productivity. And it is no wonder. In the January, 2009 Real Time Campaign Agency Survey, the agents using Real Time (inquiries, endorsements, and/or quoting) reported saving ten hours a month per employee on average. One agent calculated that this time savings translated to the equivalent of $3,000 annually per personal lines employee!

Real Time is fast becoming the predominant workflow used by agents to perform transactions with carriers, supplanting carrier proprietary websites. That same 2009 Real Time Campaign Survey indicated that 54% of the agencies with agency management systems are doing Real Time inquiries and endorsements. 43% of agents are using personal lines real-time rating through the agency management system or comparative rater and 18% are performing commercial lines real-time rating. The amount of real-time quoting

in both personal and commercial lines is growing significantly in 2009 because of the tremendous time savings agent users of this functionality are deriving. Another very positive sign is that 180 carriers and carrier groups are now offering at least some real-time functionality. That’s a 58% increase in two years!

The Evolution of Download In 1988, a group of savvy agents and carrier representatives under the auspices of the associations and ACORD stepped forward to spell out the actual functions effective interfaces must possess from the agents’ perspective. They formed the Interface Systems Requirements (ISR) panel which made the crucial recommendation in 1990 that download should be the starting point for current interface development. This gave a clear direction to interface development for carriers and vendors that broke a log jam and resulted in a proliferation of download implementations. Personal lines download is one of the greatest success stories to-date in the advance of agency automation in terms of the productivity enhancements that have resulted from it. Even today, agents encourage carriers to implement download first, then Real Time.

Agent-carrier pairs implementing personal lines download continue to grow.

Continued on page 34

DON’T GET BITTEN

BY AN E&O CLAIM YOU COULD HAVE AVOIDED. Big “I” members whose agency E&O insurance is written by Swiss Re through the Big “I” Professional Liability Program have access to an exclusive risk management web site.

Log on today to fish for E&O claims frequency data, real-life case studies and analysis, sample client letters, sample agency procedures, agency E&O self assessments, podcasts on important E&O topics, and much more.

Big “I” Risk Management Website

www.independentagent.com/EOHappens

more than

AmTrust North America An AmTrust Financial Company

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the breakthrouh in agency automation

Today there are 170,531 such agent-carrier pairs. Agencies can save significant additional processing time by implementing direct bill commission download that automates the entry of commission statement information into their systems.

Agents are also taking advantage of claims download where available to get back into the claims loop and to automate the entry of claims data into their systems.

Commercial lines download is the next big opportunity area now that significant steps have been taken in recent years by individual carriers, vendors, and industry groups to improve the quality of these downloads and to reduce the overwriting of agency data. Today there are 42,067 agent-carrier pairs that have implemented commercial lines download representing an 18% increase over the prior year.

Commercial lines download is providing many agents with significant productivity benefits and I encourage agents to test it

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again with their carriers now that these quality improvements have been made.

Agency Management Systems Become the Hub of the Electronic Agent It all started back in the 1950’s when vendors emerged to do agency accounting on a batch basis. From these roots, the first agency management systems emerged still focused on automating the accounting function. With the approval of ACORD standard applications, these management systems were then in a position to create a policy and client data base so that agencies could service clients from the system and use it as a marketing tool to cross sell. Agency management systems also were sensitive to the E&O risks agents faced and developed activity logs that track every transaction performed by the system as well as permit the capture of client conversations and events. Most recently, the focus of agency management systems has broadened importantly beyond internal agency operations to agent-carrier connectivity using tools such as Real Time and download.

During this evolution in the functionality of the systems, we also saw the introduction of the PC, windows, color, email, and the laptop which made these systems much more attractive for agency principals and producers to use. Now agency managers can generate invaluable management reports from these systems to oversee their agency operations.

Today the truly electronic agency is emerging, eliminating paper wherever

it can. The agency management system provides the hub for the agency’s information, and the agency’s other systems, if needed, integrate with the management system as much as possible. Thanks to the Internet, agencies no longer need to have their agency management system on site. It can now be housed at the vendor allowing the vendor to be responsible for updates, maintenance and proper back ups. In addition, agents can access their systems and work from anywhere that the Internet is available.

Agents once again have played a key role in the evolution of the automation available to them by working with their agency management system vendors through their user groups to provide continuous improvements in functionality.

These user groups also provide invaluable education and online services to their agent users to help them get maximum benefit out of their systems.

Agent Advocacy at the Industry Level We have seen how small groups of agents have made big impacts in the evolution of agency automation for the better over time. That critical agent involvement —coupled with carrier and vendor leaders having similar foresight—continues today.

In 1999, the Independent Insurance Agents & Brokers of America (IIABA) created the Agents Council for Technology (ACT) to put a more consistent and permanent focus on industry automation issues from the agents’ perspective. The immediate catalyst was the impact the Internet was starting to have on the industry. At the first ACT meeting, the carriers made an urgent plea for the development of new standards based on XML for transporting data across the Internet. ACORD responded promptly and its XML standards today provide the basis for the industry’s Real Time transactions.

The agents, carriers, vendors, associations, and user groups involved in ACT are working on: • improving agent-carrier connectivity and workflows in the standard as well as E&S markets • promoting best practices agency workflows

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the breakthrouh in agency automation

• addressing agency and agent-carrier interface security issues • helping agents with their online marketing using Web sites, search engine positioning, and social networking • extending quoting and servicing functionality to clients through agency Web sites and • assessing major technology and societal trends that will impact our distribution system and identifying the industry’s “Must Do” issues arising out of these trends.

ACT has created a number of resources to assist agencies and the industry in these areas which are available at www.independentagent.com/act.

Also in 1999, ACORD established AUGIE (ACORD Users Group Information Exchange) to bring together all of the agency management system user group leaders.

ACT and AUGIE closely coordinate their activities and often meet back to back, so that they avoid duplication and communicate a consistent message. AUGIE has created several reports and tools to assist

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agencies in adopting the latest workflows (www.acord.org, click on “Advocacy” and then AUGIE). AUGIE’s top priority in 2009 is to increase the implementation of commercial lines download.

A key to ACT and AUGIE’s success has been the unprecedented level of involvement and insight being provided by carrier, vendor, user group, and agent and industry association leaders. The interest by the carriers and vendors in working together to further the agents’ ease of doing business is greater than I have ever seen it in my 34 years in the business.

The coming together of the industry to create the Real Time/Download Campaign in 2007 is a great example of the high level of industry partnership that is currently occurring on agent-carrier workflow issues. The Campaign has been hugely successful in driving increased agent and carrier implementation of Real Time and now hopes to accomplish the same result with commercial lines download. The Campaign has also developed excellent materials to assist agents with

their Real Time and download implementations (www.getrealtime.org). Another great resource on what Real Time and download functionality particular carriers and vendors offer is found at www.ACTtech.org.

Agency automation tools are meeting the needs of agencies better than ever before and are critical to the functioning of the successful agency today. But the evolution of agency automation is a journey and our work will never be done as we continue to react to and incorporate the technology enhancements that become available. It is reassuring that the industry has ACT and AUGIE in place keeping a constant focus on these issues with unprecedented support by the different stakeholders. But we need more agents, carriers, and vendors to get involved at the industry level. As this brief history has shown, a few committed people can make a real difference in the evolution of agency automation, creating lasting benefits that improve the daily work of virtually every independent agency employee.

Tired of doing things the hard way?

You won’t be with West Bend.

That’s because independent agents believe West Bend makes it easy to do business!

A nationwide ease-of-doing-business survey polled 7,400 agents and brokers who ranked West Bend number one overall and at the top when it comes to providing insurance expertise and support, flexibility in underwriting, accurate and timely policy service, effective and user friendly technology, and fair and properly handled claims.

So when it comes to doing buisness, make West Bend your first call!

We’re the easy choice!

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The significant increase in the number of lawsuits being filed against agents is a bit alarming. Of concern is the suit activity which is driven by insurance company’s claims handling which results in the company being sued along with the writing agent.

Unfortunately, we have witnessed a 3-fold increase in E&O claims against Iowa agents in the last 10 years!

Workers’ Compensation, Certificates of Insurance, Binders, Data Collection, Client Signatures, and Other E&O Pitfalls!

by Bob Skow, CPCU, CAE – Chief Executive Officer

E

ach year IIAI carefully examines Agents E&O data to determine where losses are coming from, types of errors, and the sources of problems.

Included with this article is data showing a quick snap shot of what is going on in Iowa on the E&O front. The significant increase in the number of lawsuits being filed against agents is a bit alarming. Of

concern is the suit activity which is driven by insurance company’s claims handling which results in the company being sued along with the writing agent.

Unfortunately, we have witnessed a 3-fold increase in E&O claims against Iowa agents in the last 10 years!

As we review claim history certain issues jump out at us. Workers’ Compen-

sation is first. We are seeing an increase in workers’ compensation related E&O claims. Often the E&O exposure is related to no workers’ compensation coverage in effect or certain employees not being covered (i.e. sole proprietors, partners, LLC members). We suggest every agent who writes agriculture risks or business risks read carefully 2 sections of Iowa law, 85.1 and 85.1A. Those provisions are included with this article. Developing a procedure for discussing workers’ compensation with all business you write may be wise.

Certificates of insurance have become the quicksand of agent liability exposure.

The Big “I” has developed extensive guidelines on handling certificates.

You can find these on our website, www.iiaiowa.org click on member resources then click on agency business resources and then legal issues. Bottom line be very careful that the ACORD certificate is filled out correctly, and do not alter the form. And always regardless of what your carriers tell you, send copies of all certificates to the carrier whose coverage the certificate reflects.

Binders – We have seen an increase in claims related to agents either exceeding their binding authority or worse yet, binding coverage the carrier is unwilling to offer! Our recommendation is to document all binders immediately, and send binder documentation to the carrier.

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Transaction Type – Total Loss Amount

Also, know your binding authority, and remember you cannot bind unless you have a direct contract that gives you authority. Brokered business, assigned risk, and specialty coverages typically do not permit the agent to bind. When in doubt do not bind coverage.

Data collection – Document, document, document. This is a problem! Unfortunately, we have witnessed a surge in E&O claims where the agent failed to document their file, or worse yet, failed to carry out the request. Crop insurance data collection is of real concern. There is a lot of opportunity to get information reported incorrectly. We suggest you check and recheck crop acreage reports for example.

Signatures – A good way to lose your license, and maybe your agency!

Forging a signature is an insurance agent’s equivalent to a mortal sin!

Electronic signatures are acceptable.

If a signature is required, and the client is unavailable we suggest using electronic sources as a means of documenting a signature.

IIAI staff is here ready to assist you in suggesting risk management ideas to help you make more money and operate efficiently while avoiding E&O claims. If your agency is insured with the Big “I” Westport Program you’ll want to check out the new web based risk manage-

Iowa Mid-term Change, 13%

New Business New Client, 11% Customer Inquiry, 8%

Renewal, 29%

Coded as Other, 3% Non-Renewal, 2% Cancellation, 1%

New Business Existing Client, 33%

ment tool called E&O Happens. To access this tool go to www.independentagent. com/EOHappens. Including all practical agency E&O claims prevention information and tools, this is designed to help your agency avoid costly E&O claims and to improve overall agency operations.

Some of the valuable information, which is targeted for all agency staff positions, includes: • E&O claims frequency data • Real-life case studies and analysis • Sample client letters

• Sample agency procedures • Agency E&O self assessments • Podcasts on important E&O topics • E&O tips • Agency E&O related articles • And much more The best protection for avoiding an E&O claim is developing sound business practices, communicating with clients and companies, maintaining consistent procedures for everyone in the agency and documenting.

Iowa Application Error, 14%

Policy Change Error, 15%

Risk Assessment Error, 8% Recommendation Error, 7%

Certificate of Insurance Error, 5% Policy Issuance Error, 5% Policy Interpretation Error, 3%

Other, 18%

Policy Replacement Error, 2% Claims-Related Error, 1%

Binder Error, 18%

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Coded as Other, 1% Policy Renewal Error, 20%

Policy Cancellation Error, 1%

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Important Iowa Law: 85.1 Inapplicability of chapter.

Except as provided in subsection 6 of this section, this chapter does not apply to: 1. Any employee engaged in any type of service in or about a private dwelling except that after July 1, 1997, this chapter shall apply to such persons who earn one thousand five hundred dollars or more from such employer for whom employed at the time of the injury during the twelve consecutive months prior to the injury, provided the employee is not a regular member of the household. For purposes of this subsection, “member of the household” is defined to be the spouse of the employer or relatives of either the employer or spouse residing on the premises of the employer.

2. Persons whose employment is purely casual and not for the purpose of the employer’s trade or business, except that after July 1, 1997, this chapter shall apply to such employees who earn one thousand five hundred dollars or more from such employer for whom employed at the time of the injury during the twelve consecutive months prior to the injury.

3. Persons engaged in agriculture, insofar as injuries incurred by employees while engaged in agricultural pursuits or any operations immediately connected therewith whether on or off the premises of the employer, except: a. This chapter applies to persons not specifically exempted by paragraph “b” of this subsection if at the time of injury the person is employed by an employer whose total cash payroll

to one or more persons other than those exempted by paragraph “b” of this subsection amounted to two thousand five hundred dollars or more during the preceding calendar year. b. T he following persons or employees or groups of employees are specifically included within the exemption from coverage of this chapter provided by this subsection: (1) The spouse of the employer, parents, brothers, sisters, children, and stepchildren of either the employer or the spouse of the employer, and the spouses of the brothers, sisters, children, and stepchildren of either the employer or the spouse of the employer.

Alleged Error or Omission – Total Loss Amount Iowa Failure to add Additional Insured/Loss Payee, 5%

Failure to adequately identify exposures, 8% Failure to adequately explain policy provisions, 8% Inaccurate/incomplete information provided to carrier, 15%

Other - Miscellaneous, 6% Failure to duplicate prior coverage, 6%

Failure to increase or decrease limit/value, 5% Failure to recommend coverage type, 4% Failure to commuicate insurer’s requirements to customer, 2%

Other, 22%

Failure to obtain signed/documented declination of coverage, 2% Failure to recommend adequate value/limit, 1%

Failure to procure coverage, 17%

Failure to ascertain policy status, 18%

Improper cancellation, 1% Failure to follow cancellation/deletion instructions, 1% Typographical/clerical error, 1%

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Type of Policy – Total Loss Amount

(2) The spouse of a partner of a partnership, the parents, brothers, sisters, children, and stepchildren of either a partner or the spouse of a partner, and the spouses of the brothers, sisters, children, and stepchildren of either a partner or the spouse of a partner, who are employed by the partnership and actually engaged in agricultural pursuits or operations immediately connected with the agricultural pursuits either on or off the premises of the partnership. For the purpose of this section, “partnership” includes partnerships, limited partnerships, and joint ventures.

(3) Officers of a family farm corporation or members of a limited liability company, spouses of the officers or members, the parents, brothers, sisters, children, and stepchildren of either the officers or members, or the spouses of the officers or members, and the spouses of the brothers, sisters, children, and stepchildren of

Iowa Personal Lines Occurrence, 18%

Commercial Lines Occurrence, 27%

Not Applicable, 1%

Commerical Lines Claims Made, 54%

either the officers or members, or the spouses of the officers or members who are employed by the corporation or limited liability company, the primary purpose of which, although

not necessarily the stated purpose, is farming or ownership of agricultural land, and who are actually engaged in agricultural pursuits or operations immediately connected with the

Line of Business – Total Loss Amount Iowa Farm Owners, 4%

Auto, 7% Bonds, 8%

Homeowners, 6% Crop, 6%

A&H, 3% BOP/Special Multi-Peril, 2% Builders Risk, 2%

Other, 20%

Commercial General Liability, 21%

Flood, 2% Umbrella-Excess, 2% Workers Compensation, 1% Motorcycle, 1%

Commerical Property, 32%

Not Applicable, 1% Ocean Marine, 1% Garage Coverage Form, 1%

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agricultural pursuits either on or off the premises of the corporation or limited liability company.

DON’T GET

(4) A person engaged in agriculture as an owner of agricultural land, as a farm operator, or as a person engaged in agriculture who is exempt from coverage under this chapter by subsection 3, paragraph “b”, subparagraph (1), (2), or (3), while exchanging labor with another owner of agricultural land, farm operator, or person engaged in agriculture who is exempt from coverage under this chapter by subsection 3, paragraph “b”, subparagraph (1), (2), or (3), for the mutual benefit of all such persons.

4. Persons entitled to benefits pursuant to chapters 410 and 411.

5. The president, vice president, secretary, and treasurer of a corporation other than a family farm corporation, not to exceed four officers per corporation, if such an officer knowingly and voluntarily rejects workers’ compensation coverage pursuant to section 87.22.

6. Employers may with respect to an employee or a classification of employees exempt from coverage provided by this chapter pursuant to subsection 1, 2, or 3, other than the employee or classification of employees with respect to whom a rule of liability or a method of compensation is established by the Congress of the United States, assume a liability for compensation imposed upon employers by this chapter, for the benefit of employees within the coverage of this chapter, by the purchase of valid workers’ compensation insurance that does not specifically exclude the employee or classification of employees. The purchase of and acceptance by an employer of valid workers’ compensation insurance applicable to the employee or classification of employees constitutes an assumption by the employer of liability

BITTEN

BY AN E&O CLAIM YOU COULD HAVE AVOIDED. DON’T BE ON THE HOOK FOR:

 Failing to procure coverage requested by the client

 Not adequately identifying client exposures

 Failing to provide timely notice of a claim to the carrier

 Misrepresenting or not explaining policy provisions

 Providing inaccurate information to carriers

 Failing to properly add additional insureds or loss payees

wiss Re Policyholders written through the Big “I” S Professional Liability Program have exclusive access to the Big “I” Risk Management Website - E&O Happens.

ccess claims frequency data, real-life case studies A and analysis, sample client letters, sample agency procedures, agency E&O self assessments, podcasts on important E&O topics, and much more.

Big “I” Risk Management Website www.independentagent.com/EOHappens

FALL 2009 |

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Making the Ward’s 50 Benchmark Group once was good news. Making the Ward’s 50 Benchmark Group for property-casualty insurance companies for the fifth consecutive year shows that Donegal’s approach is consistently on target. The achievement recognizes that Donegal Insurance Group’s on-going commitment to safety, consistency, and strong performance provides our agents with stability they can count on. We believe having that peace of mind makes a difference.

Donegal supports the independent agent system exclusively and we are always looking for professional agents to assist in growing our market.

Call Rick Mason, Regional Vice President

800-545-6480 www.lemm.com

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without any further act on the part of the employer, but only with respect to the employee or classification of employees as are within the coverage of the workers’ compensation insurance contract and only for the time period in which the insurance contract is in force. Upon an election of such coverage, the employee or classification of employees shall accept compensation in the manner provided by this chapter and the employer shall be relieved from any other liability for recovery of damage, or other compensation for injury.1A 85.1A Proprietors, limited liability company members, limited liability partners, and partners.

A proprietor, limited liability company member, limited liability partner, or partner who is actively engaged in the proprietor’s, limited liability company member’s, limited liability partner’s, or partner’s business on a substantially fulltime basis may elect to be covered by the workers’ compensation law of this state

Person Involved – Total Loss Amount Iowa Owner/ Partner/Sole Proprietor, 14% Agent/Broker Account Manager, 6% Licensed Customer Service Representative, 1%

Producer, 79%

by purchasing valid workers’ compensation insurance specifically including the proprietor, limited liability company member, limited liability partner, or partner. The election constitutes an assumption by the employer of workers’ compensation liability for the proprietor, limited liability company member, limited liability partner, or partner for the time period in which the insurance contract is

in force. The proprietor, limited liability company member, limited liability partner, or partner shall accept compensation in the manner provided by the workers’ compensation law and the employer is relieved from any other liability for recovery of damages, or other compensation for injury.

FALL 2009 |

| 45

You’re an independent agent.

Who’s got your back?

The Big “I” Professional Liability Program Protect.

Prevent.

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Our risk management resources keep your agency from making common preventable mistakes.

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www.independentagent.com/EO

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2008 Big “I” Advantage, Inc. and Swiss Re

INDEPENDENT INSURANCE AGENTS OF IOWA 4000 Westown Parkway, Suite 200 West Des Moines, Iowa 50266

PRSRT STD U.S. Postage Paid Des Moines, IA Permit No. 2538

INDEPENDENT INSURANCE AGENTS OF IOWA 2009 PROGRAM SPONSORS

Listed are the companies who strongly support the Independent agency system and the Independent Insurance Agents of Iowa.

PLATINUM Allied Insurance EMC Insurance Companies The IMT Group Independent Agents Service Corporation Pekin Insurance

SILVER

GOLD Continental Western Group Grinnell Mutual Integrity Insurance Iowa Mutual Insurance Company Progressive Rain and Hail LLC State Auto Insurance United Fire Group

Farmers Mutual Hail Insurance Company of Iowa GuideOne Insurance

Accident Fund / United Heartland Indiana Insurance

BRONZE

Berskire Hathaway Homestate Companies

General Casualty

LeMars Insurance Company

Merchants Bonding North Star Mutual Insurance Company

THANK YOU FOR YOUR SUPPORT!

RDS Group SECURA Insurance Selective Insurance WestBend Western National Insurance Westfield Insurance